Wednesday, May 12, 2010

Up to $2B for US Army Munitions Orders

$372 million in US Army orders for small caliber ammunition. (May 3/10)

On March 20/09, Alliant Techsystems (ATK) in Minneapolis, MN received a 4-year indefinite delivery/ indefinite quantity contract (W52P1J-09-D-0027) from the US Army Sustainment Command in Rock Island, IL to produce 5.56mm, 7.62mm and .50-caliber ammunition at the Lake City Army Ammunition Plant (LCAAP) in Independence, MO. The contract has a potential value of $2 billion.

ATK began operating the LCAAP in 2000 and is the largest supplier of small-caliber ammunition to the US military, producing a mix of 5.56mm, 7.62mm, .50-caliber, and 20mm cartridges, as well as ammunition links.
Working in partnership with the Army, ATK has expanded manufacturing capacity at the plant, and is also under contract to modernize the facility…

The US armed forces have suffered from small arms ammunition shortages in recent years, and their reliance on the World War 2 era Lake City plant as their sole source for military small arms ammunition was a contributing factor. 

During the 10 years it has operated the plant, ATK has delivered more than 10 billion rounds of ammunition to the US Army for use by all the military services, while executing a $242 million modernization project at LCAAP.

In addition to financing the modernization of the Lake City facility, the US military has made General Dynamics Ordnance & Tactical Systems its second source supplier for small arms ammunition.

Contracts and Key Events

May 3/10: Alliant Techsystems announces it received orders totaling $372 million to produce 5.56mm, 7.62mm and .50-caliber ammunition for the US Army Sustainment Command in Rock Island, IL. This is the 1st significant order in the 2nd year of a 4-year contract, with additional orders expected during this fiscal year. ATK operates the LCAAP in Independence, MO, where the rounds will be produced.

June 17/09: Alliant Techsystems (ATK) in Minneapolis, MN announces that it $42 million in small-caliber ammunition orders from the US Army Sustainment Command in Rock Island, IL to produce 5.56mm, 7.62mm and .50-caliber ammunition. ATK Small Caliber Systems will perform work at the LCAAP in Independence, MO.

March 20/09: Alliant Techsystems (ATK) in Minneapolis, MN received a 4-year indefinite delivery/ indefinite quantity contract (W52P1J-09-D-0027) from the US Army Sustainment Command in Rock Island, IL to produce 5.56mm, 7.62mm and .50-caliber ammunition. The contract has a potential value of $2 billion.

This article can be found in its entirety here.

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